Trade setup for 6th August

Yesterday the bull run continues. I thought that the 16300 would not be breached, but nifty shot and went up to 16350 and then closed below 16300. I had sold huge quantities in 16300 and was just holding it as I was pretty confident that reversal would happen. In fact, I did sell even 16300 ce even when its premiums were at 45 which was ITM, of course, the volumes were small.

Looks like the markets are in no mood to stop after the range breakout. Yesterday, the banks were silent. It was the move of Reliance, metals and IT. 

In the US Robinhood shares fell 27%. It is moving like a penny stock :)

Finally, the ITC is rallying. This is a wonderful time to invest in this. It is a wonderful company and a good dividend yielding company as well.

Yesterday the stock which was in news was Vodafone. KM birla resigned and the stock fell more than 10% and recovered to end in flat. Bharti shot up with the hope of dupoly. 

The metal rally is again back. I got scared and closed my tatasteel CE which I had sold in wonderful profit.

Today you have the RBI policy and it looks like there wont be any change. If they provide any surprise then banknifty may rally towards its ATH.

Today you have the earning of hindalco, m&m

The most important is the removal of the retro tax. This is good for FPI and companies. It seems that vodafone will be getting money but not the money with which they can clear the dues.

The covid cases are gradually rising in many countries. So make sure you stay indoor.


  1. I am happy that the last week is over as nothing worked in my favour. Closed the week with almost 2-2.5% loss. 
  2. Today I will be doing short straddle at ATM in nifty and probably even in banknifty after policy.
  3. I am still carrying the CE spread in SRF. It is in 6k loss for now and it can be managed.
  4. I have applied 10 applications in devyani. If even this time if i don't get any then I will stop applying for IPO's :)
  5. The PE which I sold aggressively in the monthly expiry after 15900 was taken out has paid. All are in good profit. I will probably take some out today as this is the 4th day consecutive run.
  1. The dow and the nasdaq closed in the green.
  2. Europe also closed in the green.
  3. Today the Asian markets are in the mild red. All depends on the policy outcome for us.
  4. SGX is up 20 points
  1. Yesterday the FII sold for 700cr and DII bought for 700cr
  1. Crude is falling and is now close to $70 - 71 which is good. 
  2. $ index is showing some strength.